Free Ohio Property Practice Test — LicenseIQ

Question 1

The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

Accepted Answer

Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.

Question 2

Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

Accepted Answer

REALTORS must disclose in writing their licensed status and any interest when buying or selling property for themselves or family.

Question 3

A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

Accepted Answer

A legal nonconforming ('grandfathered') use predates the ordinance and may continue, usually with limits on expansion. A variance is permission to deviate from a current requirement.

Question 4

On whom does ORC 322.02 levy the permissive county real property transfer tax?

Accepted Answer

ORC 322.02 levies the tax on the grantor named in the deed, payable to the county auditor before the deed is recorded.

Question 5

What is the maximum fine the Ohio Real Estate Commission may impose per violation of ORC 4735.18?

Accepted Answer

ORC 4735.051 authorizes a fine not exceeding $2,500 per violation. $10,000 is the base Ohio Civil Rights Commission housing civil penalty, a different enforcement scheme.

Question 6

Who may perform an appraisal of real property for a lender?

Accepted Answer

Only licensed or certified appraisers perform appraisals. Licensees may prepare a CMA, which is not an appraisal.

Question 7

A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

Accepted Answer

When no bid meets the lender's minimum, the lender takes title and the property becomes REO inventory.

Question 8

The 'bundle of rights' in real property includes all of the following EXCEPT:

Accepted Answer

The bundle includes possession, control, enjoyment, exclusion and disposition - never a guaranteed profit.

Question 9

A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

Accepted Answer

Taxes = $6,000 / 12 = $500; insurance = $1,200 / 12 = $100. PITI = $1,193.54 + $500 + $100 = $1,793.54.

Question 10

The four elements that must all be present for real property to have value are summarized by the acronym DUST, which stands for:

Accepted Answer

Value requires Demand, Utility, Scarcity and Transferability.

Question 11

A lease in which the tenant pays a fixed rent and the landlord pays all property expenses is a:

Accepted Answer

In a gross lease the tenant pays flat rent and the landlord covers taxes, insurance and maintenance; in a net lease the tenant pays some or all of those expenses.

Question 12

Which official appraises real property for tax purposes and accepts homestead exemption applications in Ohio?

Accepted Answer

The county auditor values property and processes homestead applications; the recorder records documents and the treasurer collects taxes.

Question 13

When a tenant in common dies, that owner's share:

Accepted Answer

Tenancy in common has NO right of survivorship, so a deceased co-owner's interest passes by will or to heirs. Automatic passage to co-owners describes joint tenancy.

Question 14

Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

Accepted Answer

When taxes are paid in arrears, the buyer will pay the full bill later, so the seller is charged (debit) and the buyer credited for the seller's portion.

Question 15

An Ohio licensee is found to have committed a second discriminatory practice violation. What must the Real Estate Commission impose?

Accepted Answer

ORC 4735.18(A)(7) requires, for a second violation, suspension of at least two months or revocation; for any subsequent violation, revocation.

Question 16

Which transfer is exempt from Ohio's Residential Property Disclosure Form requirement?

Accepted Answer

ORC 5302.30(B)(2) exempts transfers by fiduciaries such as executors, along with court-ordered sales, transfers between co-owners and to family, new never-occupied construction, and others. Land installment contracts are expressly covered.

Question 17

A quitclaim deed is most often used to:

Accepted Answer

Quitclaim deeds convey whatever interest the grantor may have, without warranties, making them useful for removing clouds or releasing claims.

Question 18

Fines imposed by the Ohio Real Estate Commission are deposited where?

Accepted Answer

ORC 4735.051 directs fines into the real estate recovery fund.

Question 19

An investor buys a property for $180,000 and sells for $216,000. What is the percent of profit on cost?

Accepted Answer

Profit = $36,000; $36,000 / $180,000 (cost) = 20%. Dividing by the sale price ($216,000) would give 16.7%.

Question 20

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 21

A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

Accepted Answer

1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.

Question 22

A buyer received the disclosure form before making an offer, then signed a contract. Two weeks later, the buyer learns nothing new but wants out. What rescission right does ORC 5302.30 give?

Accepted Answer

ORC 5302.30(K)(3)(d) provides no rescission right when the buyer received the form before submitting the offer and signing the agreement.

Question 23

Regardless of when the disclosure form is received, an Ohio buyer may not rescind under ORC 5302.30 after which point?

Accepted Answer

ORC 5302.30(K) cuts off the rescission right at closing or 30 days after the seller's acceptance, whichever comes first.

Question 24

When may the Ohio Real Estate Commission levy a special assessment on renewing licensees for the Recovery Fund?

Accepted Answer

ORC 4735.12 permits a special assessment of up to $10 per year of each licensing period only if the fund is below $250,000 on July 1.

Question 25

When an Ohio broker cannot locate a purchaser who is entitled to earnest money, the broker must report and remit the money to whom?

Accepted Answer

ORC 4735.24(C)(2) requires notice under ORC 169.03 and reporting and remitting the funds as unclaimed funds to the director of commerce.

Ohio real estate property practice test

1. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

2. Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

3. A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

4. On whom does ORC 322.02 levy the permissive county real property transfer tax?

5. What is the maximum fine the Ohio Real Estate Commission may impose per violation of ORC 4735.18?

6. Who may perform an appraisal of real property for a lender?

7. A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

8. The 'bundle of rights' in real property includes all of the following EXCEPT:

9. A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

10. The four elements that must all be present for real property to have value are summarized by the acronym DUST, which stands for:

11. A lease in which the tenant pays a fixed rent and the landlord pays all property expenses is a:

12. Which official appraises real property for tax purposes and accepts homestead exemption applications in Ohio?

13. When a tenant in common dies, that owner's share:

14. Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

15. An Ohio licensee is found to have committed a second discriminatory practice violation. What must the Real Estate Commission impose?

16. Which transfer is exempt from Ohio's Residential Property Disclosure Form requirement?

17. A quitclaim deed is most often used to:

18. Fines imposed by the Ohio Real Estate Commission are deposited where?

19. An investor buys a property for $180,000 and sells for $216,000. What is the percent of profit on cost?

20. A licensee may manage property for an owner for a fee only if there is:

21. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

22. A buyer received the disclosure form before making an offer, then signed a contract. Two weeks later, the buyer learns nothing new but wants out. What rescission right does ORC 5302.30 give?

23. Regardless of when the disclosure form is received, an Ohio buyer may not rescind under ORC 5302.30 after which point?

24. When may the Ohio Real Estate Commission levy a special assessment on renewing licensees for the Recovery Fund?

25. When an Ohio broker cannot locate a purchaser who is entitled to earnest money, the broker must report and remit the money to whom?

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